Nursery & Floriculture Production Industry Profile

Companies in this industry grow and sell plants, shrubs, sod, trees, and seeds. Major US companies include Ball Horticultural, Color Spot Nurseries, Griffin Land & Nurseries, and Monrovia Nursery.

Global sales of commercially grown flowers total about $50 billion, according to the International Trade Centre. Developed countries in Europe, the Americas, and Asia account for about 90 percent of floriculture product demand.

The US nursery and floriculture production industry includes about 50,000 farms with combined annual revenue of about $16 billion. US personal consumption expenditures on flowers, seeds, and potted plants are expected to grow at a high rate in the next two years. Key industry drivers include residential and commercial construction and consumer spending.

COMPETITIVE LANDSCAPE

Demand is driven by consumer income and commercial real estate construction. The profitability of individual companies depends on anticipating demand for various types of plants, and an efficient distribution system. Large operators have economies of scale in distribution. Small operators can compete successfully by raising specialty plants or serving a local market. The industry is fragmented.

PRODUCTS, OPERATIONS & TECHNOLOGY

Products include flowers and flowering plants, shrubs, food plants like tomatoes, Christmas trees, sod, and seeds. Large commercial growers concentrate on producing container-grown ornamental plants for indoor and outdoor use, including bedding plants (usually grown in flats and transplanted into beds by the end-user); shrubs; and flowering potted plants. Products include annuals like marigolds and petunias; perennials like ...